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04.03.2015 15:11

EVN Bulgaria to Request 6.98% Electricity Price Hike for Households

On average, the bill of a household supplied by EVN would then rise from BGN 49.35 to BGN 52.80, VAT included, calculated on the basis of 200 kWh daytime consumption and 70 kWh during the nighttime

AUTHOR: publics.bg

© EVN Bulgaria

Power company EVN Bulgaria, supplying consumers in Southeastern Bulgaria, announced that it will request that the Energy and Water Regulatory Commission (EWRC) approve a 6.98% electricity price increase for household consumers as of July 1, 2015. This is needed for the restauration of a normal rate of grid investment that could guarantee the normal supply of the customers across EVN’s area.

On average, the bill of a household supplied by EVN would then rise from BGN 49.35 to BGN 52.80, VAT included, calculated on the basis of 200 kWh daytime consumption and 70 kWh during the nighttime.

This forecast is based on the assumption that the state-owned National Electricity Company (NEK) would not, on its turn, request a price hike. The calculation is based on the planned supply of around 8TWh of electricity. The regulated market price for households of EVN’s is formed by the price of NEK (currently around BGN 114/MWh) plus a 2.29 percent margin for EVN, thus basically leaving the EVN and the other two utilities selling power to the regulated market at a loss. EVN said it will insist that the energy regulator allows it to reach the legally possible threshold of 3 percent.

The company informed on Friday that the energy regulator did not approve any investments for the last year to be covered through electricity bills. Nevertheless, the company invested BGN 75 m (EUR 37.5 m), while the average required grid investment is BGN 137 m.

It is yet unclear what will be the price increase for the small businesses supplied under regulated prices. Nevertheless, EVN expects that the tendency for cross-subsidies between industry tariffs and the lower-than-actual regulated household prices will remain in 2015. As much as 25% percent of the small enterprises, or 10 – 12 percent of all EVN customers, are expected to migrate to the liberalised market in 2015. Households, however, still remain the main customer group of the utility with (58 – 60 percent of all sales).